Debt Management

NEW:

• H&F Homes Money Worries leaflet

• LBHF's new and useful Help and advice during the recession pages

Being in debt can be scary...

And it often feels that it's much easier getting into debt than it is to get out of debt! But there is help available. If you have problems with your council rent for example, housing officers are trained to listen and give advice in a sympathetic and professional way, suggesting if appropriate, any extra benefit you might be entitled to.

There are websites which can give you good advice such as the National Debtline www.nationaldebtline.co.uk  (0808 808 4000 ) but beware! Some so called 'free debt advice' websites are actually a front for finance companies that offer to help you clear your debts for a fee.

Useful information and advice on debt & money can also be found on the LBHF website.

Citizen's Advice Bureau (CAB)

Finally the Citizen's Advice Bureau (CAB) is a fantastic resource offering free, impartial advice on financial and legal matters; helping you draw up a budget, phoning companies on your behalf, and sometimes even getting debt reduced or written off.

The first thing to do is take stock of exactly what you owe and to whom. We've included a budget planner to help make this easier. If you feel overwhelmed or struggle with numbers, enlist someone who you can trust and who can help you. List as much as you can, not just big bills like rent, gas or electric, but also petrol and clothes, for example.

Gather all the paperwork together that you can and sort it in to different piles for different bills and debts. It might be easier to attach a piece of paper to each pile which clearly sets out the phone number, contact name and any reference numbers you need to quote when you contact the company.

Try and work out what you can realistically pay back and how often. Creditors (the people you owe money to) will often prefer to accept a small amount of money that you can keep paying regularly rather than a large amount that you can't afford and so causing you to default.

Sometimes though, a company will set an unrealistic figure and appear unwilling to compromise – stay calm. Explain that if you agree to the amount they suggest, you are not going to be able to pay it, and you're going to fall further behind. Make a note of phone calls you make and make copies of letters you send.

The worst thing you can do is ignore the problem. It will make you anxious and sometimes even ill, and the problems will continue, often with interest and other charges piled on top of the original amount. 

Remember, a lot of people, from all walks of life, get into debt.